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Dáil Éireann díospóireacht -
Tuesday, 5 Feb 2002

Vol. 547 No. 3

Written Answers. - Insurance Industry.

Jim O'Keeffe

Ceist:

103 Mr. J. O'Keeffe asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the increase in insurance premiums; and her proposals in this regard. [3284/02]

Decisions on underwriting insurance risks and setting premiums are matters for judgment by individual private insurance companies and EU law prevents us from intervening directly in the matter.

I am very much aware of, and concerned about, insurance costs that have increased considerably during the past year. The insurance industry has pointed to a number of factors, both domestic and international, to explain the increases. These include High Court decisions that require insurers to strengthen reserves for claims arising in past years and the impact of 11 September on international insurers.

The Motor Insurance Advisory Board, MIAB, has been charged with advising us on motor insurance costs and, in particular, with examining the relationship between the incidence of claims and the premiums charged for various classes of policyholder identified by age and sex. The issue of the high cost of insurance for young drivers is especially being examined by the board. I expect to receive the final report of the board over the month ahead. In light of its recommendations, the Government and I will consider what further action is appropriate and necessary, thereafter.

It is intended that the establishment of the personal injuries assessment board, PIAB, will achieve a reduction in the delivery costs of personal injury compensation, thus permitting a reduction in insurance costs to consumers.

Question No. 104 answered with Question No. 96.

Denis Naughten

Ceist:

105 Mr. Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment the action she intends to take to address the high cost of car insurance; and if she will make a statement on the matter. [3123/02]

The Department of Enterprise, Trade and Employment is pursuing various initiatives to address the high cost of insurance, including motor insurance.

The Motor Insurance Advisory Board, MIAB, has been charged with advising me on motor insurance costs and in particular, with examining the relationship between the incidence of claims and the premiums charged for various classes of policyholder identified by age and sex. The issue of the high cost of insurance for young drivers is especially being examined by the board. I expect to receive the final report of the board over the next month. In light of its recommendations, the Government and I will consider what further action is appropriate and necessary.
An interdepartmental implementation group is progressing the establishment of the personal injuries assessment board, PIAB. I am confident that the establishment of the PIAB will achieve a reduction in the delivery costs of personal injury compensation, thus permitting a reduction in insurance costs to consumers.

Pádraic McCormack

Ceist:

106 Mr. McCormack asked the Tánaiste and Minister for Enterprise, Trade and Employment if all insurance providers operating here are adequately bonded. [3409/02]

All insurers authorised to underwrite insurance on the Irish market are subject to EU solvency requirements, whether they are regulated by the Irish authorities or by regulatory authorities in other EU member states. The purpose of solvency supervision is to ensure that insurance undertakings are in a position to meet the expectations of policyholders or claimants.

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